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Monday, 10 April 2017

Futures flat as first-quarter earnings season approaches

U.S. stock index futures were little changed on Monday as investors awaited earnings from big banks later in the week, kicking off the first-quarter earnings season.

* JPMorgan, Citigroup (C.N) and Wells Fargo are scheduled to report quarterly earnings on Thursday and could give a glimpse into the U.S. banking industry after a strong finish in the fourth quarter.

* Investors are keenly watching the quarterly results to justify lofty market valuations following a post-election rally, sparked off by bets that President Donald Trump would introduce pro-growth policies.

* Earnings of S&P 500 companies are estimated to have risen 10.1 percent in the first three months of the year, the most since the fourth-quarter of 2014. The index is currently trading at 17.4 times forward earnings estimates, above its long-term average of 15, according to Thomson Reuters.

* Federal Reserve Chair Janet Yellen is scheduled to speak in Michigan after markets close. Investors will be looking to clues on the central bank's plans to trim its $4.5 trillion balance sheet after recent comments from Fed officials.